Project on Special Studies:

Business
Industries and
AI
A journey through Future Global Economy
 What is AI?
Artificial intelligence is a broad field, which refers to the
use of technologies to build machines and computers
that have the ability to mimic cognitive functions
associated with human intelligence, such as being able
to see, understand, and respond to spoken or written
language, analyze data, make recommendations, and
more. It is a simulation of human intelligence into
machines to do things that we would normally rely on
humans.
Machine learning is a subset of artificial intelligence that
automatically enables a machine or system to learn and
improve from experience. It uses algorithms to analyze
large amounts of data, learn from the insights, and then
make informed decisions.
 Application of AI in different business
BSFI
Banking: Banks collect, collate, and organize data of customers. Thus, AI technology
has been used to detect the chance of an individual conducting a fraudulent
transaction. By looking at the customer’s credit history, AI can accurately predict the
likelihood of an individual defaulting on a loan. This streamlines the process of
onboarding new customers while reducing the likelihood of non-payment.
Financial Services: AI in finance include algorithmic trading, credit underwriting, and
personalized investment recommendations based on individual financial goals and
risk tolerance. With AI's enormous potential, the finance industry will continue to
evolve and benefit from its applications.
Insurance: By leveraging AI technology, insurers can improve fraud detection
accuracy, reduce costs, and provide more personalized insurance products.
Additionally, AI can help optimize risk assessment by analyzing risk data and providing
recommendations for reducing risk and improving customer experiences.

Marketing
AI can help customers with routine inquiries, such as product information, availability,
and pricing while offering personalized recommendations based on the customer's
purchase history and preferences. AI can also help improve customer targeting by
analyzing customer data and providing recommendations for targeted marketing
campaigns. By leveraging AI technology, marketers can identify potential customer
segments, predict purchasing behavior, and optimize marketing campaigns to
maximize effectiveness and reduce costs.

Logistics
AI in logistics holds the potential to drastically change operations. Predictive
analytics can accurately predict the inventory required by a vendor and optimize
routes to minimize overhead costs. Ab InBev, the worldwide distributor for beverages
like Budweiser and Corona, has used AI to optimize logistics to a great extent.
Using predictive analytics, the organization was not only able to brew the optimal
amount of each beverage, but also accurately predict the demand of a certain
product. This allowed them to cut down the warehousing expenses and overhead
costs significantly.

Defense
The extensive application of AI-based technology in the defence sector covers many
functions and possibilities such as training, surveillance, logistics, cybersecurity, UAV,
advanced military weaponry like LAWS, autonomous combat vehicles & robots.
Ethical consequences of creating autonomous weapons have also been considered,
but AI-powered weapons are said to be indicative of the next arms race. Apart from
this, image recognition and video recognition may be used for surveillance of the
general population. By building upon existing databases with biometric and facial
scans, a citizen can be identified using facial recognition algorithms in surveillance
networks. This increases the general security of the nation while reducing human
intervention.
Healthcare
Primarily, the healthcare sector as a whole has been geared towards collecting
accurate and relevant data about patients and those who come into care.
The introduction of AI can enable the widespread deployment of predictive
healthcare. Using the power of predictive analytics, AI can help doctors make
proactive moves towards ensuring their patients’ health. Apart from predictive
healthcare, AI can also enable an easier analysis of scan results through image
recognition. This has already been used to help doctors diagnose symptoms at a much
higher rate, as AI can comb through multiple scans much faster than humans. Health
chatbots are also being developed.
AI’s global impact on different sectors
Country-wise Automation
 Negative impacts of AI on business
AI Bias
Since AI algorithms are built by humans, they can have built-in bias by those who
either intentionally or inadvertently introduce them into the algorithm. If AI algorithms
are built with a bias or the data in the training sets they are given to learn from is
biassed, they will produce results that are biassed. This reality could lead to
unintended consequences like the ones we have seen with discriminatory recruiting
algorithms and Microsoft’s Twitter chatbot that became racist. As companies build AI
algorithms, they need to be developed and trained responsibly.

Loss of Certain Jobs

While many jobs will be created by artificial intelligence and many people predict a net
increase in jobs or at least anticipate the same amount will be created to replace the
ones that are lost thanks to AI technology, there will be jobs people do today that
machines will take over. This will require changes to training and education programs
to prepare our future workforce as well as helping current workers transition to new
positions that will utilize their unique human capabilities.

A shift in Human Experience

If AI takes over menial tasks and allows humans to significantly reduce the amount of
time they need to spend at a job, the extra freedom might seem like a utopia at first
glance. However, in order to feel their life has a purpose, humans will need to channel
their newfound freedom into new activities that give them the same social and mental
benefits that their job used to provide. This might be easier for some people and
communities than others. There will likely be economic considerations as well when
machines take over responsibilities that humans used to get paid to do. The economic
benefits of increased efficiencies are pretty clear on the profit-loss statements of
businesses, but the overall benefits to society and the human condition are a bit more
opaque.
Global Regulations
While our world is a much smaller place than ever before because of technology, this
also means that AI technology that requires new laws and regulations will need to be
determined among various governments to allow safe and effective global interactions.
Since we are no longer isolated from one another, the actions and decisions regarding
artificial intelligence in one country could adversely affect others very easily. We are
seeing this already playing out, where Europe has adopted a robust regulatory approach
to ensure consent and transparency, while the US and particularly China allows its
companies to apply AI much more liberally.

Accelerated Hacking
Artificial intelligence increases the speed of what can be accomplished and in many
cases, it exceeds our ability as humans to follow along. With automation, nefarious acts
such as phishing, delivery of viruses to software and taking advantage of AI systems
because of the way they see the world, might be difficult for humans to uncover until
there is a real quagmire to deal with.
AI Terrorism
Similarly, there may be new AI-enabled form of terrorism to deal with: From the
expansion of autonomous drones and the introduction of robotic swarms to remote
attacks or the delivery of disease through nanorobots. Our law enforcement and
defense organizations will need to adjust to the potential threat these present.
It will take time and extensive human reasoning to determine the best way to
prepare for a future with even more artificial intelligence applications to ensure that
even though there is potential for adverse impacts with its further adoption, it is
minimized as much as possible.
As is the case with any disruptive event, these aren’t easy situations to solve, but as
long as we still have humans involved in determining solutions, we will be able to
take advantage of the many benefits of artificial intelligence while reducing and
mitigating the negative impacts.
 Public survey reports and Statistics

The majority of jobseekers, numbering 63%, have expressed excitement about

AI’s potential impact on the job market. Within this group, 53% are in agreement
that AI will lead to the creation of more jobs. This enthusiasm among jobseekers
reflects a readiness to embrace AI as a positive force for change in their careers.
Indian job seekers have expressed several concerns regarding artificial
intelligence, including the need for re-skilling or upskilling (43%), potential job
losses in their industry. or profession (29%), and ethical considerations (20%).
They also express apprehensions about negative impacts on their work well-being
(17%) and the possibility of bias (15%).
-Report by Indeed
Report by Randstad -
The Q3 2023 edition of the Randstad work monitor focuses on the skilling
demands of workers and the impact of AI. The survey which included 1606
respondents from India (55% male, 45% female), revealed that seven out of ten
respondents believed that AI would affect their industry and job roles. The study
found that artificial intelligence remains the most sought-after area of
development (according to 30% of respondents), followed by IT and
technological literacy (28%) and management and leadership skills (27%).
Additionally, half of the respondents stated that they would consider leaving
their jobs if their employers did not provide learning and development
opportunities within the next 12 months.
Statistics for India
Artificial intelligence (AI) is expected to add $967 billion to the Indian economy by
2035, and around $450-500 billion to the nation’s GDP by 2025, accounting for
10 per cent of the country’s target of $5 trillion GDP, a report said on Monday.
In India, AI-generated revenue stood at $12.3 billion in 2022, the report said,
adding that the AI software segment is expected to grow at a CAGR of 18 per cent
in the country by the end of 2025.
India’s share in global AI investment in 2022 stood at 1.5 per cent, the TeamLease
report added.

Global Statistics
AI is expected to contribute $15.7 trillion to the global economy in 2030, the
report further stated.
The global market size of AI in 2022 has been estimated at $136 billion, and it is
expected to grow at a CAGR of 37 per cent from 2023 to 2030, the report showed.
In terms of investment, global investments in artificial intelligence surged to a
record high of $77.5 billion in 2021, up from $36 billion in 2020.
 Conclusion / Overview
“Artificial intelligence would be the ultimate version of Google. The ultimate search
engine that would understand everything on the web,” Larry Page asserts. “It would
understand exactly what you wanted, and it would give you the right thing. We’re
nowhere near doing that now. However, we can get incrementally closer to that, and
that is basically what we work on.”

While AI has made remarkable progress and is now a crucial part of our lives, it cannot
fully replace humans due to its inability to emulate human dialogue, lack of human-like
consciousness, and limitations in adaptability. AI also lacks emotional intelligence and
requires human oversight for ethical reasons. AI is a tool designed to assist, not replace,
humans.
Whether rosy or rocky, the future is coming quickly, and artificial intelligence will
certainly be a part of it. As this technology develops, the world will see new
startups, numerous business applications and consumer uses, the displacement of
certain jobs and the creation of entirely new ones. Along with the Internet of
Things(IoT), artificial intelligence has the potential to dramatically remake the
economy, but its exact impact remains to be seen.
 Presentation by-
Mahi Shah BI-26
Khushi Jagad BI-10
Mihir Chauhan BI-03
Jay Patel BI-17

Thank you